IFB141: What To Do When The Sky Is Falling

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Announcer (00:00):

You’re tuned in to the Investing for Beginners podcast.Finally, step by step premium investment guidance for beginners led by AndrewSather and Dave Ahern. To decode industry jargon, silence crippling confusion,and help you overcome emotions by looking at the numbers, your path tofinancial freedom starts now.

Dave (00:36):

All right folks, welcome to Investing for Beginnerspodcast. This is episode 141 tonight. Andrew and I got a, well actually we’ve gota great a wetter from one of our listeners recently, a couple of weeks ago andit describes, it touches on two subjects that are very forefront in the newsrecently with the growing possibility of a pandemic with Coronavirus as well asthe ups and downs of the stock market lately over the last three or four days,which is mostly down the last three days. So we thought we would read thissweater and kind of help answer this question for the gentleman, and I’m goingto turn over an Andrew, and he is going to go ahead and get us started.

Andrew (01:16):

Okay, sure. I’ll start reading what he said and to givecontext. So we’re recording this on the 27th of February. Trump just did hisfirst conference on the Coronavirus last night and today, earlier this morning,and I saw reports that we have cases in California now with the current virus.

Andrew (01:42):

So it’s getting really serious. People are freaking outand with good reason, and I mean, I had a warning about this two weeks ago fromthis email I received, and it’s just one of those things you can’t, I guessever really understand the gravity of it until it starts to affect you. Butlet’s read some of his experiences. Talk about how that’s evolved and what wesee for the market moving forward. So this is from Matt. He says, hi there,Andrew. I’ve subscribed to your monthly stock picks, and they’ll startfollowing them, investing in the stocks you choose. I have a few questionsregarding the current economic environment and the future outlook. I’m fromAustralia but live in Singapore. The current Coronavirus has created a lot ofhavoc in this part of the world, and it doesn’t look like it will calm downanytime soon.

Andrew (02:33):

From my perspective, I run rehabilitation clinics aroundAsia, and our patient numbers have dropped by around 30% our medical supplychain has been greatly interrupted, and the companies are unable to deliver ourstock. China has stopped at manufacturing schools, and businesses are startingto close and stop operating for periods due to the virus. People are not eatingnow.